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Common East African Currency Planned

Started by Bimat, October 29, 2011, 07:16:27 PM

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Pabitra

Quote from: augsburger on December 03, 2013, 10:50:19 AM
There have been other currency unions in Africa right? How have they worked out?

Apart from Central Africa, there is West African Currency union too.
I do not think it is subsidised by any country.

A subsidised currency leads to migration of capital and keeps the subsidised economy dependent in perpetuity.

Figleaf

Not sure which plan (there are several) you are referring to. If it is this one I am willing to bet you a bottle of champagne that the eco will not be introduced in 2015. :)

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Pabitra

Dear friend Peter,
Despite having been a civil servant, perhaps longer than you ( will complete 37 years in April ), I am yet to develop a global outlook like you.

I have no knowledge of what a union might mean in terms of customs, preferential tariffs, monetary policies, linguistic and political unification or other higher order things.

My simple definition in context of present platform ( World of Coins ) is that Central Africa Currency Zone and West Africa currency zone have their coins circulating all over their zone.

The images are enclosed.

Source: Handbook of Current Circulating Coins of the World ( August 1, 2013)

PS: You save your Champagne bottle since I am off alcohol since January 2000, on medical advice. You could share it other members of WoC and raise a toast for me :-) 

<k>

What's even more amazing is the area that those two currency zones cover, Pabitra. And what's even more amazing than that is that the two different francs are pegged to one another in value. So to all intents and purposes, the two form a single de facto currency zone.

Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

Figleaf

@Pabitra: can't beat 37 years :) Logged 22 years only.

@<k>: Not all that amazing. Both use the CFA franc. What is amazing is that the areas were never merged.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

<k>

Quote from: Figleaf on December 24, 2013, 03:39:40 PM
@<k>: Not all that amazing. Both use the CFA franc. What is amazing is that the areas were never merged.

Peter

Yes, apparently each of the areas has its own central bank.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

chrisild

Quote from: Figleaf on December 24, 2013, 03:39:40 PM
What is amazing is that the areas were never merged.

Odd but not amazing. ;) I suppose it has something to do with political control. After all the Banque de France dominates the the two CFA franc zones, and from what I have read, the two (BEAC and BCEAO franc) are not convertible ...

Christian

eurocoin

This topic was last updated in 2013 but is still relevant. Although a target date was originally set for 2012, there is currently still being worked on the project. The launch of the common currency is not yet in sight. Its introduction is now planned for 2024 although they have already mentioned the launch could be postponed again. In 2013 the then 5 countries of the East African Community signed an agreement to work towards the East African Monetary Union (EAMU). These are Burundi, Kenya, Rwanda,Tanzania and Uganda. Since the agreement was signed, South Sudan has now also become a member of the East African Community but it remains unclear if it will also join the EAMU. The project is currently being threatened by unending bickering between Rwanda and Burundi and trade friction between Kenya and Tanzania. Countries have to comply with the convergency criteria for at least 3 consecutive years meaning that in 2021 we will know which countries are ready to become part of the monetary union. Currently none of the countries meets all of the criteria.

Figleaf

See reply #16. I am still calling the Eco humbug. If anyone wants to bet, the bottle of champagne is still saying the Eco (see Wikipedia) won't exist in 2020, 2021 and 2024.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

eurocoin

Quote from: Figleaf on January 09, 2019, 06:14:58 PM
See reply #16. I am still calling the Eco humbug. If anyone wants to bet, the bottle of champagne is still saying the Eco (see Wikipedia) won't exist in 2020, 2021 and 2024.

Peter

While I agree with you that none of these projects are likely to materialize, keep in mind that there are 2 separate projects for local currency unions. One in East Africa which is featured in this topic which is planned to be issued in 2024 with a yet to be determined name and one in West Africa with the concept name Eco and planned to be introduced in 2020.

Pabitra

On 29th March, 2022, Congo (DRC) has officially joined the East African Community. The East African community plan to use same currency by 2024 and same passport. The free movement of people will boost the economy within member states.